The law of unintended consequences states that the actions of people, and especially Government, have effects that are unanticipated.  For example, with the development of Viagra and similar medications the demand for rhinoceros horn as an aphrodisiac in Asia has been reduced since a more effective alternative is available.  Rhinoceros populations are up!

     One can see the law in action when we study the consequences of legislation here in Illinois. 
• A recent amendment to the Prevailing Wage Act mandates that employers provide inter-day start and stop times for its employees.  One problem is that the systems in our industry do not allow for that kind of record keeping. 
• The discussions on the Truth in Employment pending legislation have the potential to create a broad definition of “employee” that will classify significant numbers of truly independent contractors as employees of the company hiring them.  The record keeping, paperwork, and reporting requirements alone will discourage the use of independent contractors, not to mention the burden of proof requirements on the contractor to prove the subcontractor is actually an independent contractor. 
• Keep an eye on the prompt payment legislation.  Done correctly, it could be a great piece of legislation.  Owners pay the general contractor faster, subcontractors and suppliers get paid faster, and everyone wins. It can’t be a simple elimination of the pay when paid clause.  It needs to be good for everyone, not just a part of the payment chain represented by strong special interests. 

     Think of the many unintended consequences that have been conjured up in ambiguous contract language in labor contracts.  Think of all of the conflicting work rules and jurisdictional overlaps within and between the various labor contracts.  Don’t forget to scrutinize those amendments!

     The point is we are dealing with mountains of paperwork and regulations daily.  The legislative issues concerning our industry and the contract provisions with the labor unions are of paramount importance. Our involvement in communicating with our legislators and participating in the public debate is needed and appreciated.  Do not push for an issue or vote for something or sign anything until you have had the opportunity to study and reflect on the subject.  Do the best you can to avoid the law of unintended consequences. 

Advanced Drainage Systems, Inc.
621 Indian Trail Road
Antioch, IL 60002-1151
Phone: (847) 331-5559
Fax: (847) 838-3834
SUPPLIER
Tim Fahey : Sales Representative
Manufacturer of high-density polyethylene pipe in 4” – 60” diameters.
Sponsor: Mike DeNinno, Lake County Grading

U.S Cellular
One Pierce Place
Suite 800
Itasca, IL 60143-1253
Phone: (630) 285-1394
Fax: (630) 285-8532
SUPPLIER
Steve Gaus: Wireless Business Consultant
Dana Dorcas: Director of Sales
Wireless service, cellular phones and products
Sponsor: Joe Henderson, Joseph J. Henderson & Son

CISCO
616 Enterprise Drive
Suite 100
Oak Brook, IL 60523-8833
Phone: (630) 472-9411
Fax: (630) 472-9413
ASSOCIATE
John Brining: Executive Director
John Freitag
Labor management associations that promote and supports the unionized construction industry.
Sponsor: Dave Henderson, Joseph J. Henderson & Son 

     Every candidate for public office needs help if they are to be elected. Usually when we think about supporting a candidate, we reach for the checkbook. But money will only take a candidate so far. Other types of assistance can be much more appreciated – and not cost anything. Here are a few suggestions:

·         Sign locations in district on heavily traveled streets. Name recognition is everything for a candidate. If the voters do not know them, they will not vote for them. If you own property in a high visibility location, consider letting them put a sign up.

·         Payroll stuffers in support of a candidate. If you believe in a candidate, don’t keep it to yourself. Let your employees know how they can be helped by the election of Candidate A. Prepare a payroll stuffer or ask the candidate to provide literature for you to use.

·         Organize district fundraisers. Arrange for the candidate to appear at a fund raiser hosted by you. Invite friends, family, industry acquaintances and potential voters to come and make a small (or not so small) donation. This is a minimal cost to you, but a huge benefit to the candidate.

·         Stuff campaign literature. Offer to take a day and help stuff campaign literature. Simple tasks like this are perfect for volunteers. If the candidate is using their time wisely, they will be on the campaign trail looking for votes. And the more time they spend with menial tasks, the less they can spend with voters.

·         Letters to editors. Letters to the editors are very helpful in getting positions out. These are best submitted by voters living in the district. You do not even need to work very hard at putting the letter together. The candidate or campaign staff will help create the letter and tell you where to send it. Just personalize it, sign it and send it!

        There are many other ways to help. Pick a candidate you want to help and call them. Or call the LCCA Office and we will help put you in contact with the right people. Be a participant in the political process, not just an observer. And remember to vote March 21.

     The Primary Elections are scheduled for March 21 and several key races deserve your attention. This month we will look at the County Board Races. The County Board sets the direction of the county. Transportation issues, land use, stormwater, permits and many more issues that impact contractors are controlled by the Board. Electing board members who understand what “smart growth” really is, and the impact that over regulation has on business and economic development, is a key for LCCA.
     LCCA’s Government Affairs Committee, chaired by Steve Dalbec looked at the races at their committee meeting concentrating on primary contested races. While they did not make a recommendation in every contested race, they would recommend the candidates in BOLD for your consideration:

District 2: (Wadsworth/Beach Park)
      Robert Kofler, Republican
      Jason Mercure, Republican
      Randall Whitmore*, Republican

District 4: (Zion/Winthrop Harbor)
      Jack Senter Jr., Republican
      Brent Paxton*, Republican

District 8: (North Waukegan)
      Bill Durkin, Democrat
      Robert Sabonjian*, Democrat

District 13: (Lake Bluff/Lake Forest)
      Susan Loving Gravenhorst*, Republican
      Scott J. Helton, Republican

District 22: (Deerfield)
      Arnie Silberman, Democrat
      Carol Spielman*, Democrat

* indicates the incumbent.

     Each of the candidates that we are recommending for your support has shown an understanding of the needs of business and are committed to improving Lake County. We feel they are the best choice to move the county forward in a constructive way.

     The rooms are sold and the party in Florida is only a month away. Unfortunately, we have had to make a change in the program and Wayne Pratt will not be able to join us. However, Margery Newman and Bill Zeigler are more than up to the task of filling the void.
     The lucky members who will be joining the party at the LCCA Winter Conference at the Marco Island Marriott are:

Julie Berger & Mark Chamberlin, Berger Excavating Contractors, Inc.
Dave & Carol Crain, Ley & Associates
Jim & Kathy Dietz, Dietz Surveying, Inc.
Karen Johnson & Peter Tobin, Roughneck Concrete
Mary & Larry Kenar, Campanella & Sons Inc.
Scott Nelson, H.H. Holmes Testing
Todd Nelson, H.H. Holmes Testing
Margery Newman & Robert Buege, Ogletree, Deakins, Nash, Smoak & Stewart
Jonathan Pease & Amy Cox , J. Pease, Inc.
Don & Joanne Robison, Waukegan Steel Sales, Inc.
Mike & Liz Ryan, H.H. Holmes Testing
Tim & Mikey Staples, Camosy, Inc.
Mike & Penny Temple, Mechanical, Inc.
Cliff Wolper
Bill Zeigler, Zeigler Associates, Ltd.
Suzanne & Kevin Zupec, Campanella & Sons Inc.
Gary and Sandy Dowty, LCCA

     Since current temperatures are in the low 80’s, we have advised the hotel to order an additional truckload of beer. They assure us they will be ready. 

    The LCCA Government Affairs Committee, chaired by Steve Dalbec, Jos. J. Henderson and Son, has identified the following legislation that will be targeted by LCCA in the spring session. The session will be short this year with adjournment projected in April. But in a very short period of time, you can be helped or hurt depending on what bills rise to the top.

Truth in Employment – House Bill 5002’s goal is to curtail “1099 workers” that are classified as Independent Contractors, but should be classified as “employees.” To determine the impact of this bill, LCCA had Rick Sampson, Ogletree Deakins; Lou Brydges, Law Offices of Louis W. Brydges, Jr. & Bill Zeigler, Zeigler Associates review the proposed law. 
     According to Mr. Sampson, the problems in this bill are in the definitions. In fact, the definition of “independent contractor” is so broad that many legitimate independent contractors could be considered employees. And since the bill presumes the person is an employee unless proven differently, the burden of proof will be on you.
     In a letter to the AFL-CIO, LCCA has gone on record opposed to the legislation as written, but we have also recommended changes that might accomplish the unions goals while still protecting legitimate independent contractors. Our recommendations include:
          Changes must start with the definition and we are recommending that definitions included in a New Mexico law be used.
          We also want to add language to ensure that legitimate businesses (corporations, partnerships, etc.) are excluded from coverage.
          Finally, we want to tone down the punitive nature of the bill that requires severe financial penalties, debarment and criminal prosecution after just two violations.

Prompt Payment – A bill is being prepared to amend the State Prompt Payment Act to “correct” the failings. The original Prompt Pay Act was passed in 1993 and required payment within 60 days and interest of 1% per month for unpaid bills. Unfortunately, this only applied to “properly approved” invoices. And many agencies just avoid “approving” bills to keep from paying.
     The proposed bill will require review in a timely manner and notification within 45 days of any defects in the request and additional information required to correct the defect. If the agency fails to approve or disapprove the invoice within 60 days, interest shall be owed.
     Contractors are currently required to make payments to subcontractors and suppliers within 15 days of receipt from the owner. Once again, the problem has been what is “approved” for payment. The new bill will require the payment within 15 days of all undisputed requests.
     And if the contractor does not have a reasonable cause to withhold payment, the subcontractor or supplier can request a hearing by the owner to determine if the payment is due or not. An administrative law judge would hear the case and will direct the contractor to pay, with interest, if the subcontractor prevails.
     Subcontractors and suppliers will also be notified when the contractor is paid by the state agency. Voucher numbers and amounts will be sent electronically to all subcontractors and suppliers of record.
 Copies of this proposal are available from the LCCA Office.

Prevailing Wage – Our last legislative issue is to correct a problem created by the passage of a Prevailing Wage reform bill in the last session. The bill added the requirement that contractors and subcontractors records “shall also show the actual hourly wages paid in each pay period to each employee and the hours worked each day in each work week by each employee. While participating on public works, each contractor’s payroll records shall include the starting and ending times for each employee.”
     The addition of starting and stop times, which are now required on your certified payrolls, is a problem for many contractors whose systems are not capable of managing this information. ICIC and others introduced an amendment to exclude starting and stopping times from the certified payrolls in the last Veto Session but the measure was not considered. It will be introduced again this year.

     LCCA’s Education Committee is pleased to offer Part 2 of “Developments In AIA Contracts and Construction Law”.  Contractual shifting of risk among construction participants is common today.  General contractors, sub-contractors, and architects are impacted.  This seminar will help you understand the common components of today’s construction contract.  The next contract you sign, you will better understand the responsibilities you have accepted and those you have transferred.  Controlling your contractual exposures will continue to be part of your business plan. 

     The law offices of Hinshaw & Culbertson, and the risk management firm of Thilman Filippini will present materials.  Both enjoy a seasoned track record in the construction industry. 

     The seminar will be presented at the Country Squire, Grayslake, Illinois, on Thursday, February 23 beginning at 3:30 and will conclude at 5:30 pm.  The monthly membership meeting will follow at 6pm.  Note that this is an hour later than last months start time!

     This is the 2nd of a two part seminar. This month’s topics include:
          Builders Risk
          Jobsite care, custody & Control
          Breach of Contract
          Vicarious Liability
          Construction Defect
          Business Interruption
          Property Damage Certificate of Insurance Representation

     To register please go online at www.lcca-il.org/events.

     The LCCA Education is pleased to announce a very special seminar on “Strategic Collaboration” – How General Contractors and Subcontractors Can Increase Their Profits Through Collaboration. The need for cooperation increases with the complexity of the process. Yet, despite the complex nature of construction, the industry finds itself mired in confrontation to everyone’s detriment.

     Ted Garrison, a nationally known speaker with more than 25 years of experience in construction, will be the facilitator – and you will be participating in the discussion, not just listening! Ted works extensively with AGC and ABC chapters around the country and when we approached him with this subject, he admitted no one had asked for this particular topic but “This is definitely a topic that needs to be discussed more!” This program, which was developed specially for us, is the result.

     The seminar will be held from 8:30 a.m. – 4:30 p.m. at the LCCA Office on Wednesday, March 1, 2006. The cost is $225 per person and includes all course materials, lunch and breaks. If you learn anything at all, this cost will be recouped in a few months! Registrations will be limited and we will try to keep the participants balanced between General Contractors and Subcontractors to improve the learning experience.

     For more information on the course please call the office at 847-623-2345